American Eagle Outfitters (NYSE:AEO) shares experienced unusual options activity on Thursday. The stock price moved up to $32 following the option alert.
The COVID-19 pandemic caused disruptions to the back-to-school shopping season in 2020 as parents braced for hybrid and at-home learning.
With many schools expecting to resume in-person learning in 2021, the back-to-school shopping season could be a potential boon for retailers.
When insiders purchase shares, it indicates their confidence in the company's prospects or that they view the stock as a bargain. Either way, this signals an opportunity to go long on the stock. Insider purchases should not be taken as the only indicator for making an investment or trading decision. At best, it can lend conviction to a buying decision.
This unusual options alert can help traders discover the next big trading opportunities. Traders will search for circumstances when the market estimation of an option diverges heavily from its normal worth. Unusual trading activity could push option prices to exaggerated or underestimated levels.
Shares of American Eagle Outfitters (NYSE:AEO) saw some unusual options activity on Monday. Following the unusual option alert, the stock price moved up to $35.09.